SOL-“Caution Remains for Active Sellers”

4-Hour Analysis:

Big Picture: Price holds on to the range low levels for another session. Furthermore, a healthy consolidation has been observed precisely between the range lows, which is being supported further by the emerging bullish divergence. The warning for active sellers remains in effect. If buyers can sustain a little longer and protect this region for a little longer, strong rounds of short-coverings cannot be ruled out.

On the Upside Solana will face his first test between 20.60 and 20.80 levels. Surpassing this would take price towards 21.20 to 21.30 levels. Stronghold above this is still required for Solana to transform these rounds of short-coverings into panic short-coverings. Strength above 21.30 could swiftly push prices up to 21.50, 21.80, and possibly even higher.

On the Downside Solana is still being held by the range lows. These are critical supports for sellers to breach if they are to drag prices any lower. Lower levels are unlikely to be revisited unless these supports break. However, if sellers overwhelms these supports and begins to accumulate pressure below the range lows, a decline into 19.20 and 18.50 cannot be ruled out.